WORLD TRADE  
ORGANIZATION  TN/RL/GEN/151 
17 September 2007 
 (07-3882) 
Negotiating Group on Rules Original:   English 
  
SPECIAL AND DIFFERENTIAL TREATMENT 
 
Proposal from Argentina and Brazil
 
 
 
 The following communication, dated 14 September 2007, is being circulated at the request of 
the Delegations of Argentina and Brazil.  
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1. Argentina and Brazil welcome the broad discussion on fisheries subsidies at the Negotiating 
Group on Rules (NGR) meetings, particularly regardi ng special and differential treatment (S&D).  In 
order to contribute to the discussions on the subj ect, Argentina and Brazil present this legal text 
proposal, that reaffirms our key principles regardi ng S&DT for developing countries in the fisheries 
negotiations.  This legal draft is a work in progr ess and does not constitute Members' final position on 
the matter. 
 2. Argentina and Brazil emphasize the need of strict disciplines on fisheries subsidies as an 
significant contribution to the conservation of marine resources.  Therefore, this legal draft is intended 
as part of a general framework of disciplines based on the principle of a broad prohibition with 
specific exceptions, considered under some c onditions ("fishery adverse effects").  
  TN/RL/GEN/151 
Page 2  
 
  Article X 
  
Special and Differential Treatment 
 
X.1 Notwithstanding Article XXX [prohibition] and s ubject to the conditions set in this Article, 
developing country Members shall be allowed to main tain or grant the following fisheries subsidies: 
 
(a) for fishing vessel construction, acquisiti on, repair, modification or modernization, 
including gear acquisition or improvement; or 
(b) to support the operation of fishing fleets (such as supply of fuel, bait or ice);  or 
(c) to fishing activities related to the subs istence and livelihood of the fishermen and 
their families.
1  
X.2  The subsidies referred to in (a) and (b ) above may be maintained or granted only: 
(a)  to exploit non endangered species or group of species2 in the subsidizing Member 
maritime jurisdiction3; or  
(b)  to fill fishing quotas or any other rights4 agreed within the framework of a regional 
fisheries management organization or a rrangement, which operates under a fisheries 
management system that is based on releva nt international standards and practices. 
X3.  The subsidies referred to in X. 1 that increase domestic fishing capacity5 may be only 
maintained or granted provided that the developing country Member specifically determines that the 
resulting fishing capacity6 will exploit species with no or almost no fishing activities, or that are being 
exploited below levels which are capable of produc ing a maximum sustainable yield, or will be in 
compliance with X.2 (b).  
                                                      
1 Those activities are performed at an in-shore basis with non-automatic net-retriever devices, provided 
that (a) the activities are carried out by fishermen, on an individual basis or organized in associations, including, 
but not necessarily, the family member s; (b) the basic scope of the activitie s encompasses both family livelihood 
and a small profit trade; and (c) there is no major empl oyer-employee relationship on the activities carried out.  
2 For the purposes of this Annex, "endangered specie" shall mean all species except those that are (a) in 
a very healthy situation, with no or almost no fishing activ ities, or (b) that are being exploited below or at levels 
which are capable of producing a maximum sustainable yield, based on the best scientific information available. 
3 "Maritime jurisdiction" encompasses the Territorial Sea, the Exclusive Economic Zone and the 
Continental Shelf as defined in the United Nations Convention of the Law of the Sea (UNCLOS).  
4 For the purpose of this article "quotas or an y other rights" means enforceable quantitative limits, 
established through scientific assessment, imposed on fish volumes for specified period. 
5 For the purpose of this article "domestic fishin g capacity" means the capacity of fishing vessels 
flagged by a Member, owned by companies constituted under the domestic law of that Member, and operated by 
crews the members of which are in the majority nationals of that Member.  
6 For the purpose of this article "resulting fishing capacity" means the total capacity authorized by the 
Member for the fishing of a species or group of species in its Maritime jurisdiction, namely the domestic fishing 
capacity plus the capacity of other vessels authorized by the Member to fish in its maritime jurisdiction.  TN/RL/GEN/151 
 Page 3 
 
 
  X.4 Developing countries Members shall only be allo wed to grant or maintain fisheries subsidies 
referred to in paragraph 1 (a) and (b) above if they have a national fisheries management system in 
place7 which, inter alia,  ensures that there are no vessels i nvolved in fishery activities of any 
endangered species.8 
X.5 The subsidy programmes referred to in paragr aph 1 shall be subject to compliance with the 
provisions on notification and transparency in Article XXX.9 
  
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7 Where relevant international sta ndards and practices exist (for example the FAO Code of Conduct for 
Responsible Fisheries of 1995), Members shall use them, or the relevant parts of them, as a basis for their 
national fisheries management systems.  
8 In the sense of not having any vessel to cause a "fishery adverse effects" to the interest of other 
Members.  
9 Additional flexibilities may be provided for in the case of subsidies granted by least developed 
countries.  Provision should also be made for technical assistance to developing countries that need it in order to 
comply with the provisions on notification.